Sheinbaum’s approach to mining under scrutiny as association, economy ministry agree to cooperate
Mexico's economy ministry and the association of mining engineers, metallurgists and geologists, AIMMGM, agreed to establish a joint collaboration framework to address various topics of interest for the local mining industry, the association reported.
The announcement of the agreement comes amid expectations about whether the new administration under President Claudia Sheinbaum will take a less restrictive stance toward mining than her predecessor, Andrés Manuel López Obrador (AMLO).
The agreement was reached last week following a meeting between AIMMGM president Rubén del Pozo and ministry officials responsible for the mining sector, which has seen a freeze on new concessions and slow processing of environmental permits since late 2018, when AMLO assumed the presidency.
Del Pozo noted that the meeting was an opportunity to talk with the federal administration, as a complement to ongoing discussions with lawmakers. The AIMMGM said in a statement that the goal is to work together to increase the benefits and contributions of the mining and metallurgical industry, which provides direct and indirect employment to more than 3mn people in Mexico.
The meeting was also used to review concerns within the mining sector, including a legislative initiative to ban open-pit mining, which is set to be debated in both houses of congress following its approval in August by the lower chamber’s constitutional affairs committee, before the current legislature took office.
Participants in the meeting included Fernando José Aboitiz, head of the ministry's coordination unit for extractive activities; Luz Hiram Laguna, director-general of mining development; and José Castro, director-general of mines, according to the AIMMGM.
BNamericas contacted a spokesperson of mining chamber Camimex to verify whether it had held a similar meeting with the new ministerial authorities, but they did not respond immediately.
In early September, Camimex’s new president, Pedro Rivero, said he sensed some openness from Mexican authorities, especially within the new legislature, to discuss and reconsider the ban on open-pit mining. This ban is part of a series of proposed constitutional reforms by the executive branch, which, if approved, could further endanger the industry's future.
“At the moment, I think the most important thing is to remain calm… I see openness from authorities to find common ground and from legislators to listen,” Rivero said at an industry event at the time.
Camimex estimates that, if passed in its current form, the reform would lead to an annual economic contraction of US$13bn, roughly equivalent to 1% of GDP.
The chamber also said Mexico's role as a producer of nine critical minerals for North America’s energy transition would be restricted, given that both the US and Canada allow open-pit mining under regulatory oversight.
Despite the upcoming debate of the reform, the ban on this form of mining was not included in a list of 100 promises outlined by the new president when she took office on October 1, which could be positive news for the country’s mining industry.
José Sevilla-Macip, senior research analyst at S&P Global Market Intelligence, said he is uncertain whether Sheinbaum is willing to back the ban at this time.
Whether the ban moves forward will depend partly on the ruling Morena party and whether its members will prioritize the legislation, Sevilla-Macip said in a recent agency report.
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News in: Political Risk & Macro (Mexico)
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